I'm not so sure

Reader comment on: More Anti-Bank Populism on the Right

Submitted by Bill (United States), Jul 1, 2014 17:29

Making big banks ineligible for FDIC insurance might be good idea if one also got rid of the excessive regulation of them at the same time. Managing the transition would be complex, but could be done if there were an opt out of FDIC insurance based on some, for example, capital adequacy test. It might be that non FDIC banks would prosper more than the FDIC banks. Not having the regulatory/complience burden could significantly reduce their costs. We got along without the FDIC for a long time: no reason why we couldn't do so again.

For that matter maybe any bank should be able to opt out of the FDIC.

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